Case No.: WR1F/GRz/89/2023
MB/LAW is pleased to announce the successful completion of restructuring proceedings under which a court approved the arrangement (composition) of a trading company specializing in the distribution and sale of finishing materials and premium paints for residential and office interiors.
The company had been operating since 2005, supplying high-quality finishing products, including paints from renowned brands (Benjamin Moore, Ralston, Oikos). Its clients included private customers, business owners, and interior architects recommending products for hotels and restaurants. Sales were carried out both in physical stores and online.
Causes of financial distress:
Due to the COVID-19 pandemic (closure of showrooms, inability to organize training and promotional events, loss of stable client relations), rising product prices after the pandemic, the war in Ukraine, a sharp increase in interest rates (loan installments up by 200%), energy costs increasing by around 300%, and additional tax burdens under the “Polish Deal” reform, the company fell into serious financial difficulty. As a result, one of its two stores had to be closed.
Restructuring outcome:
Thanks to the efforts of the arrangement supervisor – attorney-at-law Michał Burek, LL.M., licensed restructuring advisor no. 1665 – and the support team, MB/LAW reached an agreement with creditors. The arrangement was voted upon and approved by the court on 29 April 2024.
- Full remission of interest for creditors in Group 2 (banks with claims exceeding PLN 300,000).
- Mortgage-secured creditor included in the arrangement – repayment continues under the existing loan schedule.
- Bank claims (unsecured) rescheduled into instalments (60–84 monthly instalments depending on the creditor group).
- Smaller creditor groups: repayment with interest (WIBOR 3M + 4% margin or a fixed 3% per annum).
- Private creditor: full waiver of interest, court fees, and enforcement costs – repayment of 100% of principal in 36 monthly instalments.
If your company is facing liquidity risks or financial difficulties, contact MB/LAW. We handle every case individually and comprehensively. We negotiate with creditors, prepare realistic restructuring proposals, and actively support entrepreneurs in regaining financial stability.
